Have you ever heard of a planned gift? If you have not, you are not alone. Statistics show that 63% of those of us over the age of 30 are not familiar with the term planned giving.
A planned gift is simple: it is a gift that is planned. The plan can be written in your will or created by the terms of a trust instrument or gift annuity. However, regardless of the type of gift you choose to leave, it is important to know that planned gifts are so much more than simple donations. They are legacy plans, giving you the power to determine how your family and community will remember you after you are gone.
There are many types of planned gifts. The most common type is a bequest. A bequest is a statement made in a will demonstrating the intention to leave a portion of an estate to a beneficiary such as a family member, charity or parish. There are different types of bequests and they receive different treatments under the law. The most effective way to ensure that your bequest is treated and distributed the way you desire is to keep it as simple as possible. For example, consider leaving a percentage of your estate rather than a specific piece of property.
There are also planned gifts that provide you with income. If you are interested in receiving a charitable tax deduction as well as annual payments for life in addition to your gift, you could consider setting up a charitable gift annuity. You will be guaranteed payments for your lifetime. Any remaining balance will become part of your legacy, a gift to the organization you chose.
Planned gifts offer you tax advantages, ranging from simple estate tax deductions to complex offsets of capital gains. Most importantly, however, these gifts provide an opportunity for you to affect those you love long after you unite with God in Heaven. We can show our gratitude for the gifts we have cultivated with the love and support of our parish communities by nurturing our churches and loved ones through responsible legacy planning.
When planning your legacy, consider leaving a percentage of your estate to your parish or another Catholic ministry, after you have determined what plan is best for you and your family. It can be a gift to an existing endowment fund or can be used to establish a new fund. Consider naming your parish or your parish school as beneficiary to a charitable gift annuity or life insurance policy. There are many simple ways to give that require very little means. Remember, it doesn’t have to be a large number to make a truly meaningful impact on your community.
If you are interested in learning more about planned giving and other types of gifts, you can contact the Catholic Community Foundation of Santa Clara County or a legal or financial advisor in your area. You should always seek independent professional advice when considering your legacy plans.
Your legacy is timeless. Take the time to make it faithful and enduring.